Rental car shortage hits Canada as border restrictions loosen

Vancouver -

If you're looking to book a rental car over the next couple of weekends, you'll likely find them sold out.

The same rental car shortage that drove up prices in the U.S. earlier this year has now hit Canada. As pandemic restrictions loosen and the border opens to Americans, there is more competition for rental cars this summer vacation season.

A search online on bulk discounter Costco's website for rental cars at Toronto's Pearson International Airport for the next two weekends showed all sold out. It was the same story at Vancouver's International Airport. Costco's website searches for Alamo, Avis, Budget and Enterprise.

It's not surprising that this is happening, as rental car companies reduced the size of their fleets during the pandemic in order to survive. Now, they are having trouble beefing up their fleets because of a shortage of new vehicles due to supply issues with microchips used in new vehicles.

The Associated Canadian Rental Car Operators told CTV News rental car fleets are down 30 to 40 per cent from pre-pandemic levels.

Some consumers are turning to peer-to-peer car sharing websites like Turo to find a vehicle, but it will likely cost you more. A search on Turo for cars in Vancouver showed the daily rental rate on some cars like the Tesla 3 are up dramatically over the same time last year.

A year ago, you could rent a Tesla 3 in Vancouver on Turo for about $180 a day. Now, it could cost you $300 or more a day.

The rental car shortage is expected to last to the end of the year, so if you're travelling, book early. Alternatively, plan your trip around public transportation, or other services like taxis and ride-hailing companies.